In order to internalize the externality due to pollution, the government should impose a tax based on
A) the economic damage associated with the pollution.
B) the physical amount of pollution.
C) the size of the firm causing the pollution.
D) the value of the pollution-causing business activity.
A
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Changes in business activity are
A) referred to as business fluctuations. B) referred to as the ebb and flow of business. C) always undesirable. D) caused by the changing seasons every year.
Which of the following is not a commonly-cited explanation for the decreasing labor-force participation rates for men from 1950 to the present?
a. availability of reliable birth control b. men acquiring additional years of schooling before entering the labor force c. a preference for men to retire when younger d. changing social attitudes about stay-at-home fathers
Joey notices that by employing an additional hairdresser, he will be able to increase the number of haircuts in his salon by 15 haircuts per day. The daily salary he will need to pay the hairdresser is $200
How much is the cost for an additional haircut? Describe the general relationship between the marginal product and marginal cost curves.
The Taste Freeze Ice Cream Company is a perfectly competitive firm producing where MR = MC. The current market price of an ice cream sandwich is $5.00. Taste Freeze sells 200 ice cream sandwiches. Its AVC is $8.00 and its AFC is $3.00. What should Taste Freeze do?
A. Decrease production so that AVC will decrease. B. Continue to produce because price exceeds AFC. C. Shut down and produce zero sandwiches because price is less than AVC. D. Increase production so that AFC will decrease.